Rupee steady amid inflows, weak Asian currencies

Rupee in focus: The Rupee maintained stability on Monday, buoyed by consistent inflows yet restrained by the depreciation of other Asian currencies and increased dollar purchases by public sector banks.At 11:04 am, the rupee stood at 82.8850 against the US dollar, showing marginal change from the previous session's 82.8775. The intraday peak for the local currency reached 82.83.Forex traders anticipate continued support for the rupee from inflows, at least until the end of the month. However, interventions from the Reserve Bank of India (RBI) and the strengthening dollar pose opposing pressures.The RBI has been actively intervening to curb the rupee's decline by acquiring dollars through public sector banks. The extent of this activity prompts speculation among market participants, with some suggesting it's in response to importers' demands rather than solely RBI's strategy.Across Asia, most currencies exhibited weakness as investors awaited key events scheduled for the week. The Bank of Japan's policy decision, slated for Tuesday, is anticipated to include a potential exit from its negative interest rate policy. Similarly, the US Federal Reserve's review, scheduled a day later, is expected to focus on interest rate and inflation projections.While the BOJ's decision is uncertain, the Fed is likely to maintain its policy rate, although speculation persists regarding adjustments to its dot plot. Analysts at ANZ Bank stress that while inflation remains in line with Fed projections, potential modifications to the dot plot indicate a need for caution.(With Reuters Inputs)

Advertisement

Rupee steady amid inflows, weak Asian currencies

At 11:04 am, the rupee stood at 82.8850 against the US dollar, showing marginal change from the previous session's 82.8775.

Advertisement